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Court injunction against Discount Premium Holidays

2007-11-27 08:00:00

A group of companies that has been telemarketing discount travel memberships and vouchers has been ordered to stop breaching the Fair Trading Act, as a result of an injunction sought by the Commerce Commission.

The injunction was granted in the Auckland High Court on 16 November against a New Zealand company, Discount Premium Holidays Ltd, its affiliated Australian companies, Key 2 Communications Pty Ltd, 24 x 7 Direct Pty Ltd, and the director of all three companies, Mr Devang Parikh.

Telemarketers calling on behalf of "Discount Premium Holidays" offered discount accommodation vouchers and memberships, which a Commerce Commission investigation has revealed are extremely difficult for consumers to redeem at New Zealand accommodation providers, rendering them effectively worthless.

The memberships cost between $109 AUD and $209 AUD, and have been actively sold in the New Zealand market to consumers "cold-called" by telemarketers based in Melbourne. Approximately 2800 memberships have been sold in New Zealand since July 2006.

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